HB108 Alabama 2014 Session

Summary

Primary Sponsor

Greg Wren

Republican

Co-Sponsor

Mike Hubbard

Session

Regular Session 2014

Title

Business personal property tax returns, Department of Revenue required to develop online electronic filing system

Summary

HB108 creates an optional short form for small business personal property tax returns and requires a free online filing system (OPPAL) for electronic filing, with an advisory committee to oversee its development.

What This Bill Does

It allows taxpayers with total original acquisition cost of taxable business personal property at $10,000 or less to use a non-itemized short form, valuing their property at $10,000 for tax purposes. It requires the Department of Revenue to design the short form, plus an online filing system (OPPAL) that allows electronic filing to local county tax offices, at no cost to taxpayers or local jurisdictions. The system is optional, may be used by third parties on behalf of taxpayers, and is overseen by a local/state advisory committee; penalties for false short forms and potential audits remain as with current law. If a taxpayer previously filed itemized returns and the current total remains at or below $10,000, they may continue using the short form; if the total exceeds $10,000, they must file an itemized return and pay taxes accordingly.

Who It Affects

• Small business taxpayers with total original acquisition cost of taxable tangible business personal property at $10,000 or less per year; they may file a short form declaring property valued at $10,000 and pay taxes accordingly (optional, with potential continued use if totals stay at or below $10,000).
• Local taxing jurisdictions and county assessors (and the Department of Revenue) responsible for administering the tax, receiving electronic filings, auditing short forms, calculating tax liability for short forms, enforcing tax rules, and implementing the OPPAL system.

Key Provisions

• Authorizes an optional non-itemized short form for businesses with total assets <= $10,000, declaring all property valued at $10,000 for tax purposes.
• Department of Revenue must design the short form and filing instructions; establish the short form rules and related administration.
• Effective Oct 1, 2014, short form eligibility requires prior year itemized filing total <= $10,000 and current year total <= $10,000; tax liability on short form is based on $10,000 value.
• If a taxpayer’s total asset cost later exceeds $10,000, they must file a detailed itemized return and pay taxes based on the itemized values.
• All short forms are subject to audit; false short forms can incur penalties of 50% of any additional taxes owed.
• Department of Revenue must develop, maintain, and operate an online filing system (OPPAL) by Sept 30, 2016, allowing electronic filing to local jurisdictions at no cost; third-party filing on behalf of taxpayers is allowed.
• OPPAL is optional and limited to filing; it does not administer or enforce taxes, and filings are accessible to all applicable jurisdictions at the time of filing.
• An advisory committee (local tax officials, county officials, business and retail representatives, and a Revenue Department member) oversees OPPAL’s design and operation; committee recommendations can be appealed to the Legislative Council if not acted upon.
• Counties with existing electronic filing systems or local laws permitting electronic filing are not barred from continuing those methods, and mandatory electronic filing rights remain subject to local law.
• The act is severable, and it may repeal conflicting laws; it becomes effective three months after passage and approval, or as provided.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation